Child Labor, Crop Shocks, and Credit Constraints

Kathleen Beegle · Rajeev Dehejia · Roberta V. Gatti

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Poverty, Education, and Child Welfare Gender, Labor, and Family Dynamics Agricultural risk and resilience

Abstract

This paper examines the relationship between household income shocks and child labor.In particular, we investigate the extent to which transitory income shocks lead to increases in child labor and whether household access to credit mitigates the effects of these shocks.Using panel data from a survey in Tanzania, we find that both relationships are significant.Our results suggest that credit constraints play a role in explaining child labor and consequently that child labor is inefficient, but we also discuss alternative interpretations.

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References

1989Consumption and Liquidity Constraints: An Empirical Investigation 1992Understanding Consumption 1999Child Labor: Cause, Consequence, and Cure, with Remarks on International Labor Standards 1997Insuring Consumption Against Illness 2000Is Child Labor Inefficient?2000Does Child Labour Displace Schooling? Evidence on Behavioural Responses to an Enrollment Subsidy 1999Consumption Smoothing and Excess Female Mortality in Rural India 20075 Poverty and Vulnerability

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